UPSC MainsGeneral Studies Paper IIInternational RelationsPractice question

Role of BRICS and India's Leadership

Discuss the founding objectives and the major challenges confronting the BRICS grouping in recent times. In this context, examine the role India can play in steering BRICS as an effective platform for the Global South.

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How to approach

Begin by introducing BRICS, its demographic and economic weight, and how it aligns with India's constitutional vision for international peace. Outline the core founding objectives of the grouping, followed by an analysis of the contemporary challenges it faces, especially after recent expansion. Conclude by examining India's strategic role in balancing geopolitical tensions and steering BRICS as a development-centric platform for the Global South.

Model answer

415 words

Introduction

BRICS, now representing approximately 45% of the world's population and over 35% of global GDP in purchasing power parity terms, operationalises the vision of a multipolar world order. For India, active participation in the bloc aligns with Article 51 of the Constitution, which directs the state to foster international peace, sovereign equality, and just global governance.

Founding Objectives of BRICS

The grouping emerged out of a collective desire among major emerging markets to reshape global governance:

  • Reformed Multilateralism: Democratising post-World War II Bretton Woods institutions (IMF and World Bank quota reforms) and advocating for the expansion of the United Nations Security Council to mirror contemporary geopolitical realities.
  • Alternative Financial Architecture: Institutionalising financial safety nets like the New Development Bank (NDB) and the $100-billion Contingent Reserve Arrangement (CRA) to finance infrastructure and mitigate balance-of-payments vulnerabilities without stringent conditionalities.
  • Multipolarity and South-South Trade: Deepening South-South economic cooperation, cross-border technology sharing, and strategic autonomy shielded from unilateral sanctions.

Major Challenges in Recent Times

As the bloc has grown and global geopolitics have hardened, BRICS faces significant structural and diplomatic hurdles:

  • Anti-Western vs. Non-Western Polarisation: Pushes by members such as Russia, China, and Iran risk shifting BRICS from a non-Western developmental coalition into an explicitly revisionist, anti-Western geopolitical bloc.
  • Internal Cohesion and Bilateral Frictions: Expansion into BRICS+ brings unresolved regional rivalries into the fold (such as Egypt–Ethiopia tensions over the Grand Ethiopian Renaissance Dam), alongside long-standing Sino-Indian border standoffs, complicating consensus decision-making.
  • Currency Hegemony: Accelerated de-dollarisation drives risk replacing Western dollar dominance with Chinese Yuan hegemony, which poses macroeconomic and financial risks for other emerging economies like India.

India’s Role in Steering BRICS for the Global South

India occupies a pivotal position to ensure BRICS remains oriented toward constructive development:

  • Normative Balancer: Anchoring the group's diplomatic identity as 'non-Western, not anti-Western,' thereby bridging divides between the G7 and developing countries, leveraging momentum from initiatives like the G20 New Delhi Leaders' Declaration.
  • Developmental Anchor: Channeling priorities from the Voice of Global South Summits into BRICS deliberations, particularly focusing on sovereign debt restructuring, climate finance, and supporting the NDB's target of 30% local-currency lending.
  • Digital Public Infrastructure (DPI) Deployment: Offering open, interoperable digital frameworks (such as Unified Payments Interface and modular digital identities) to partner nations, promoting inclusive digital development without creating debt dependencies.

Conclusion

India must continue guiding BRICS away from divisive bloc politics toward pragmatic socio-economic collaboration. By maintaining its non-aligned, issue-based strategic autonomy, India can preserve BRICS as a legitimate, constructive instrument of reformed multilateralism for the Global South.

Key facts to remember

statistic

Expanded BRICS represents approximately 45% of the world's population and accounts for over 35% of global GDP in purchasing power parity terms.

International Monetary Fund
scheme
Contingent Reserve Arrangement (CRA)

A $100-billion framework established by BRICS nations to provide mutual liquidity support and buffer short-term balance of payments pressures among members.

example
Intra-Bloc Geopolitical Tensions

Diplomatic friction between Egypt and Ethiopia regarding the Grand Ethiopian Renaissance Dam (GERD) illustrates the challenge of preserving cohesion within the expanded BRICS+ format.

Frequently asked questions

What is India's stance on de-dollarisation within BRICS?

India promotes bilateral trade settlements in national currencies and greater local-currency financing through the New Development Bank, while opposing attempts to replace the US Dollar with a single alternative currency like the Chinese Yuan.